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Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
Autority power centralization1
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Autority power centralization1

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  • 1. Purvish Shah - NAVIGATORPurvish Shah - NAVIGATOR Line / Staff Authority ,Line / Staff Authority , EmpowermentEmpowerment && DecentralizationDecentralization
  • 2. Purvish Shah - NAVIGATOR POWERPOWER The ability of an individuals or groups toThe ability of an individuals or groups to induced or influence the beliefs or actionsinduced or influence the beliefs or actions of other persons or groupsof other persons or groups
  • 3. Purvish Shah - NAVIGATOR AUTHORITYAUTHORITY The right in a position to exerciseThe right in a position to exercise discretion in making decisions affectingdiscretion in making decisions affecting others.others. oror Its an Power in An Organization.Its an Power in An Organization.
  • 4. Purvish Shah - NAVIGATOR TYPES OF POWERTYPES OF POWER LEGIMATE POWER:-LEGIMATE POWER:- Arises from the position .Arises from the position . EXPERTNESS POWER:-EXPERTNESS POWER:- Power of knowledge.Power of knowledge. REFRENT POWER”-REFRENT POWER”- Influence , people believe in them and in theirInfluence , people believe in them and in their ideas.ideas.
  • 5. Purvish Shah - NAVIGATOR TYPES OF POWERTYPES OF POWER REWARD POWER:-REWARD POWER:- Power arises from the ability of some people toPower arises from the ability of some people to grant rewards.grant rewards. COERCIEVE POWER:-COERCIEVE POWER:- Closely related to reward power and normallyClosely related to reward power and normally arising from legitimate power , it’s the power toarising from legitimate power , it’s the power to punish, whether firing a sub ordinate or else.punish, whether firing a sub ordinate or else.
  • 6. Purvish Shah - NAVIGATOR EMPOWERMENTEMPOWERMENT Employees at all the levels in theEmployees at all the levels in the organization are given the power to makeorganization are given the power to make the decisions without asking theirthe decisions without asking their superiors for permission. ( acceptsuperiors for permission. ( accept responsiblities for their actions and tasks)responsiblities for their actions and tasks)
  • 7. Purvish Shah - NAVIGATOR EmpowermentEmpowerment  Power should be equal to ResponsiblitiesPower should be equal to Responsiblities i.e. P=R.i.e. P=R.  If P , is greater than ResponsiblitiesIf P , is greater than Responsiblities .( my.( my way superiority/ can be misuse or abuseway superiority/ can be misuse or abuse of power).of power).  If R, is greater than the PowerIf R, is greater than the Power, results in, results in frustration bcos the person has not thefrustration bcos the person has not the necessary power to carryout their requirednecessary power to carryout their required tasks.tasks.
  • 8. Purvish Shah - NAVIGATOR SCALAR PRINCIPLESCALAR PRINCIPLE The clearer the line of authority from theThe clearer the line of authority from the ultimate management position in anultimate management position in an enterprise to every subordinate position,enterprise to every subordinate position, the clearer will be the responsibility forthe clearer will be the responsibility for decision making and more effective will bedecision making and more effective will be organization communication.organization communication.
  • 9. Purvish Shah - NAVIGATOR FORMS OF AUTHORITYFORMS OF AUTHORITY  LINE AUTHORITYLINE AUTHORITY  STAFF AUTHORITYSTAFF AUTHORITY  FUNCTIONALFUNCTIONAL AUTHORITYAUTHORITY
  • 10. Purvish Shah - NAVIGATOR LINE AUTHORITYLINE AUTHORITY (KEY POINTS)(KEY POINTS)  Line AuthorityLine Authority is directis direct supervisorysupervisory authority from superior toauthority from superior to subordinatesubordinate  It flows in a directIt flows in a direct chain ofchain of commandcommand from the top of the company to thefrom the top of the company to the bottombottom
  • 11. Purvish Shah - NAVIGATOR LINE AUTHORITYLINE AUTHORITY (KEY POINTS)(KEY POINTS)  It exists in all organizations as anIt exists in all organizations as an uninterrupted scale or series of stepsuninterrupted scale or series of steps  SupervisorsSupervisors -- in line departments,-- in line departments, such as marketing and production –such as marketing and production – give direct orders, evaluategive direct orders, evaluate performance, and reward or punishperformance, and reward or punish those employees who work for themthose employees who work for them
  • 12. Purvish Shah - NAVIGATOR LINE AUTHORITYLINE AUTHORITY (KEY POINTS)(KEY POINTS)  It creates aIt creates a unity of commandunity of command thatthat helps employees know to whom theyhelps employees know to whom they are accountable, and whom to go to withare accountable, and whom to go to with a problema problem
  • 13. Purvish Shah - NAVIGATOR LINE FUNCTIONLINE FUNCTION Are those that have the direct impact onAre those that have the direct impact on accomplishment of the objectives of theaccomplishment of the objectives of the enterprise .enterprise . Decision makingDecision making areas of anareas of an organizationorganization associatedassociated with itswith its dailydaily operationsoperations suchsuch asas purchasingpurchasing,, manufacturingmanufacturing, and, and sellingselling..
  • 14. Purvish Shah - NAVIGATOR
  • 15. Purvish Shah - NAVIGATOR STAFF FUNCTIONSTAFF FUNCTION Are those that help the line persons workAre those that help the line persons work most effectively in accomplishing themost effectively in accomplishing the objectives.objectives.  AdvisoryAdvisory,, analysisanalysis, and support functions, and support functions such as accounting, planning,such as accounting, planning, transportation provided to production (line)transportation provided to production (line) employees.employees.
  • 16. Purvish Shah - NAVIGATOR STAFF AUTHORITYSTAFF AUTHORITY (KEY POINTS)(KEY POINTS)  Staff AuthorityStaff Authority is more limited authorityis more limited authority to adviseto advise  Staff Supervisors help line departmentsStaff Supervisors help line departments decide what to do and how to do it butdecide what to do and how to do it but do not have the authority to make finaldo not have the authority to make final decisionsdecisions
  • 17. Purvish Shah - NAVIGATOR STAFF AUTHORITYSTAFF AUTHORITY (KEY POINTS)(KEY POINTS)  They coordinate and provideThey coordinate and provide technical assistance or advice to alltechnical assistance or advice to all advisors, such as accounting,advisors, such as accounting, human resources, informationhuman resources, information technology, research, advertising,technology, research, advertising, public relations, and legal servicespublic relations, and legal services etcetc
  • 18. Purvish Shah - NAVIGATOR
  • 19. Purvish Shah - NAVIGATOR FUNCTIONAL AUTHORITYFUNCTIONAL AUTHORITY F.A is the right that is delegated to anF.A is the right that is delegated to an individual or a department to controlindividual or a department to control specified processes, practices, policies, orspecified processes, practices, policies, or other matters relating to activitiesother matters relating to activities undertaken by persons in otherundertaken by persons in other department.department.
  • 20. Purvish Shah - NAVIGATOR DECENTRALIZATIONDECENTRALIZATION The tendency to despair decision makingThe tendency to despair decision making authority in an organized structure.authority in an organized structure.
  • 21. Purvish Shah - NAVIGATOR THE NATURE OFTHE NATURE OF DECENTRALIZATIONDECENTRALIZATION DecentralizationDecentralization is the extent tois the extent to which decision-making authority iswhich decision-making authority is pushed down the organizationpushed down the organization structure and shared with manystructure and shared with many lower-level employeeslower-level employees
  • 22. Purvish Shah - NAVIGATOR KINDS OFKINDS OF CENTRALIZATIONCENTRALIZATION  Centralization Of Performance:-Centralization Of Performance:- geographically characterised , companygeographically characterised , company opertaing in single location.opertaing in single location. Departmental CentralizationDepartmental Centralization:-:- refers to concetration of specialisedrefers to concetration of specialised activities , maintenance for a whole plantactivities , maintenance for a whole plant may be carried out by single deparment.may be carried out by single deparment.
  • 23. Purvish Shah - NAVIGATOR KINDS OFKINDS OF CENTRALIZATIONCENTRALIZATION  Centralization as an aspect ofCentralization as an aspect of management:-management:- is the tendency ot restrictis the tendency ot restrict delegation of decision making . A highdelegation of decision making . A high degree of authority is held at or near thedegree of authority is held at or near the top by managers in organizationaltop by managers in organizational hierarchy.hierarchy.
  • 24. Purvish Shah - NAVIGATOR STEPS IN DELEGATINGSTEPS IN DELEGATING
  • 25. Purvish Shah - NAVIGATOR How Authority is DelegatedHow Authority is Delegated Authority is delegatedAuthority is delegated when a supervisors givewhen a supervisors give subordinates discretion to make decisions. Thesubordinates discretion to make decisions. The process of delegation involves :-process of delegation involves :- Determining the resultsDetermining the results expected from the position.expected from the position. Assigning taskAssigning task to the position.to the position. Delegating authorityDelegating authority for accomplishing these task.for accomplishing these task. Holding the personHolding the person responsible for theresponsible for the accomplishment of the tasks.accomplishment of the tasks.
  • 26. Purvish Shah - NAVIGATOR How Authority is DelegatedHow Authority is Delegated In practice it is impossible to split thisIn practice it is impossible to split this process since expecting a person toprocess since expecting a person to accomplish goals without giving authorityaccomplish goals without giving authority to achieve them is unfair, as is delegatingto achieve them is unfair, as is delegating authority without knowing the end resultsauthority without knowing the end results for which its been used . Moreover , sincefor which its been used . Moreover , since the superior’s responsiblities cannot bethe superior’s responsiblities cannot be delegated.delegated.
  • 27. Purvish Shah - NAVIGATOR Art of DelegationArt of Delegation  Personal attitude towards delegation.Personal attitude towards delegation.  ReceptivenessReceptiveness  Willingness to let go.Willingness to let go.  Willingness to let others make mistakes.Willingness to let others make mistakes.  Willingness to trust subordinates.Willingness to trust subordinates.  Willingness to establish and use broadWillingness to establish and use broad controls.controls.
  • 28. Purvish Shah - NAVIGATOR PERSONAL ATTITUDESPERSONAL ATTITUDES TOWARD DELEGATIONTOWARD DELEGATION  Receptiveness:Receptiveness:  Delegation is most effective when Manager isDelegation is most effective when Manager is receptive of ideas of the subordinatesreceptive of ideas of the subordinates  NIH (Not Invented here) – The idea belongs toNIH (Not Invented here) – The idea belongs to someone else, not the managersomeone else, not the manager  Willingness to Let Go:Willingness to Let Go:  People who have moved up the ladder mustPeople who have moved up the ladder must not interfere in decisions of the subordinates.not interfere in decisions of the subordinates.  Ex: Hiring secretary.Ex: Hiring secretary.
  • 29. Purvish Shah - NAVIGATOR PERSONAL ATTITUDESPERSONAL ATTITUDES TOWARD DELEGATIONTOWARD DELEGATION  Willingness to Allow Mistakes byWillingness to Allow Mistakes by SubordinatesSubordinates  Willingness to TRUST SubordinatesWillingness to TRUST Subordinates  Willingness to Establish & Use broadWillingness to Establish & Use broad ControlsControls
  • 30. Purvish Shah - NAVIGATOR Advantages ofAdvantages of DecentralizationDecentralization  Relieves top management burden.Relieves top management burden.  Encourages decision making and knowing theEncourages decision making and knowing the authority and responsiblities.authority and responsiblities.  Gives managers more freedom andGives managers more freedom and independence in decision making.independence in decision making.  Promotes broad control .Promotes broad control .  Promotes development of general managers.Promotes development of general managers.  Aids in adaptation in fast-changing environment.Aids in adaptation in fast-changing environment.
  • 31. Purvish Shah - NAVIGATOR Limitations ofLimitations of DecentralizationDecentralization  Makes difficult to have a uniform policy.Makes difficult to have a uniform policy.  Increase complexity of co-ordination .Increase complexity of co-ordination .  May results in loss of some control by upperMay results in loss of some control by upper level managers.level managers.  Can be limited by the availability for qualifiedCan be limited by the availability for qualified Managers.Managers.  Involves considerable expenses for trainingInvolves considerable expenses for training managers.managers.  May not be favored by economical scale ofMay not be favored by economical scale of organization.organization.

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